Buru Energy has announced a $40 million placement to fund the acquisition of fresh acreage in the Canning Superbasin, north of Perth.
Buru today said it had entered two transactions that would substantially increase its acreage position across highly-prospective areas of the Superbasin.
The Perth-based oil and gas junior said it would acquire an indirect 90 per cent interest in the EP457 and EP458 permit areas, through the acquisition of Indian resources group Gujarat NRE Oil for $36 million.
Buru will also obtain a right to a 50 per cent interest in a permit set to be issued from Blackreef Oil, for $3.5 million.
Rey Resources currently holds a 10 per cent interest in the permits, while Japan's Mitsubishi holds an option to acquire half of Buru's interest in the permits, subject to approvals.
Executive director Eric Streitburg said the acquisitions would be funded by a placement to institutional investors, with the issue price to be determined via bookbuild today.
The placement will be fully underwritten by JP Morgan.
“We are delighted to have been able to complement our already extensive acreage portfolio with these highly prospective permits,” Mr Streitberg said.
“They give us full regional coverage of all the principal tpesi n the Superbasin, and substantially complete our long-term portfolio optimisation program.
“We are very much looking forward to continuing our aggressive exploration and development of the Superbasin over a wider and more comprehensive portfolio.”
Buru’s stock last traded at $2.85, before entering a voluntary halt this morning.